Quote from @Jacob Molina: How did you do a 3-2-1 loan or how did your loan officer bring that about?

With the FHA loan you won't need a huge amount of your savings.

Is there a pre existing loan with that bank with either of you?

If your loan is $110K then the payment on the 15 year would be $927/month at 6.15%; 30 year option at 6.625% would be $690.

You could get a loan from a local bank or private lender to fund it

Focus on the numbers and the goals, not personal feelings.

Experience depends on who you deal with - the cleaner the loan file and more organized your paperwork the smoother the process with any private lender.

Quote from @Ashish Acharya: @Niklas Zhu If you tear down your STR in 2025 and convert it to personal use, depreciation recapture does not occur at the time of conversion.

Recapture typically happens only when you sell the property.If you use the property partly for personal use and partly as a rental in a given year, depreciation and other expenses must be prorated based on the number of days it was rented versus personal useBased on the current tax laws and regulations, once you've taken bonus depreciation on an asset, you cannot "capture" additional bonus depreciation on that same asset in future years, even if the rates increase.In the 2024 tax year, the rate for bonus depreciation is 60%.

You are still going to have holding costs and a heloc will just have less holding costs that you would if you were doing a personal line or hard money.